Gold rate plummeted to 4%; it’s lowest in over 5 years as of this week, with the rates of platinum also sinking to 5%, which is its weakest rate since 2009 as investors sell off their minerals and precious metals.
It came as a surprisingly large drop for gold and platinum, which have reportedly hit support levels requiring urgent care, over the weekend as the dollar got even stronger on predictions that the Federal Reserve will increase interest rates later in 2015 as a result of a stronger US economy.
Depositors instead bought the US dollar, which is unusual considering that generally gold is used as a safe bet during uncertain economic times. However, this week was the first time experts have seen gold being traded at below the basic threshold of $1,200 since March 2010.
Gold has been falling increasingly out of favour as the dollar strengthened after the Federation Chair Janet Yellen confirmed to congress that the central bank was considering raising rates again later this year.